ENTSOG TYNDP 2017 - Annex A2 - Project Details

Current TYNDP : TYNDP 2017 - Annex A

Page 128 of 620

Due to political uncertainties with regard to the existence of competing Regional Baltic LNG terminal projects on the PCI list. There is an MoU between the Estonian and Finnish states as well as Gasum and Alexela (parent group for Balti Gaas) signed on 28th February 2014 and facilitated by the European Commission. The outcome of the process cleared, when the Finngulf project by Gasum was withdrawn from the list of PCIs in October 2015, which meant the regional terminal will be built in Estonia. The project is technically ready for construction, but no FID can be taken before the competing projects issue is solved (two competing projects in Estonia).

Delay Explanation

Expected Gas Sourcing LNG (?), Terminal operator is not responsible for LNG sourcing. This is done by terminal clients (TPA). The terminal has LNG quality a Comments about the Third-Party Access Regime The regulatory scheme applicable to this project is unclear. Since the project has a PCI lable,and thus would have significant cross-border impact, the regulatory scheme must be acceptable to all concerned regulators. Additionally, the regulation for LNG terminals in the project country (Estonia) does not yet exist. Benefits Main Driver Regulation SoS Main Driver Explanation The region as a whole is an energy island with Russia as the only counterpart and supply source for gas. An LNG import and re-gasification terminal would provide alternative sources as well as storage capability. Benefit Description Additionally the terminal is capable of servicing the potential Baltic bunkering demand as well as provide alternative fuel to road and rail transport in the affected countries.

Barriers

Barrier Type Regulatory

Description

Regulatory framework for LNG facilities in Estonia is insufficient to clarify this point.

Permit Granting

Long process

The assesment methods of competing PCI projects is not well established.

Political

Market

Lack of market maturity

Financing Regulatory

Amortization rates

Lack of proper transposition of EU regulation

Intergovernmental Agreements

Agreement

Agreement Description

Is Signed Agreement Signature Date

Agreement between PMs of Estonia and Finland

Agreement in regards to the gas infrastructure in the countries.

Yes

17/11/2014

Memorandum of Understanding

MoU between Estonia and Finland and LNG project promoters

Yes

28/02/2014

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